Lotteries Amendment Act

12 December 2001 No. 22927 THE PRESIDENCY No. 1339 12 December 2001 It is hereby notified that the President has assented to the following Act, which is hereby general information:– published for No. 46 of 2001: Lotteries Amendment Act, 2001. AIDS HELPLINE: 0800-123-22 Prevention is the cure 2 GOVERNMENT No. 12927 GAZETTE. 12 DECEMBER 2001 Act No. 46,2001 LOTTERES AMENDMENT ACT, 2001 GENERAL EXPLANATORY NOTE: [ ] Words in bold typl2 in square brackets indicate omissions from existing enactments. Words underlined with existing enact men:^. a solid line indicate insertions in (English text signed by the President.) (Assented to 6 December 2001.) ACT To amend the Lotteries Act, 1997, promotional competitions; and to provide for matters incidental thereto. so as to further regulate the conduct of B E IT ENACTED by the follows:- Parliament of the Republic of South Africa, as Amendment of section 54 of Act 57 of 1997

1. Section 54 of the L.otteries Act, 1997, is amended by the substitution for subsections (l), (2) and (3) of the following subsections: “(1) A promotional competition shall not be unlawful if- 5 ( a ) it is conducted in the Republic; (b) the consideration payable in respect of the purchase of goods or the use of services in respect of which that promotional competition is conducted- (i) is the price usually or ordinarily paid, excluding discounts, for such or 10 similar goods or services without the opportunity of taking part in a promotional competition; (ii) is not increased by the opportunity to participate in that promotional competition; (iii) is the only consideration payable for those goods or services and includes 15 consideration for the right to compete; [and] (c) the opportunity of participating in the promotional competition is not the only or the only substantial inducement to a person to purchase or use the goods or services to which the promotional competition relates; ( d ) the promotional competition is conducted in accordance with the regulations 20 prescribed by the Minister in terms of subsection (2) -0; ( e ) the promotional competition or any conduct under it is not substantially comparable to- (i) a business practice which has been declared unlawful in terms of the [Harmful Business Practices) Act, 1988 (Act No. 71 of 1988); or Practices] Consumer Affairs (Unfair Business 25 (ii) a restrictive practice which has been declared unlawful in terms of the [Maintenance and Promotion of Comuetition Act, 1979 (Act No. 96 of 1979)] Competition Act, :.998 (Act s o . 89 of 1998); (f) the Minister h c : n o t in terms of subsection (4) declared the promotional 30 competition unlawful; 4 No. 7-2921 GOVERNMENT GAZETTE. 12 DECEMBER 2001 Act No. 46,2001 LOTTERIES AMEIWMENT ACT. 2001 the goods or services manufactured, sold, supplied, distributed or delivered in a promotional competition are connection with the right to participate in usually or ordinarily manufactured, sold, supplied, distributed or delivered by the person for whose benefit the promotional competition is held; [and where the promotional cornpetition is held in association or jointly with or in support of another promotional competition or in respect of or for the benefit of more than one person, the maximum values or limits prescribed by the Minister in respect of the total value or number of prizes, the frequency, duration or number of promotional competitions or the geographical area in which promotional competitions may be held, are not exceeded; and] the promotional competition is riot substantially similar to any competition, game or sports pool conducted by or on behalf of the National Lottery; 0) the consideration paid for the purchase of the goods or the use of the services promoted by a promotional competition is not increased by the opportunity to that promotional competition to such an extent that that take part in promotional competition does not mainly serve as a means, method or mechanism of promoting the rekvant goods or services, but substantially as consideration for the opportunity to take part in that promotional competition. ( 2 ) The Minister [shall] may, after 'consultation with the board, with due regard to the effect lotteries of promotional competitions on the National Lottery, incidental to an exempt entertainment and society lotteries, make regulations [in respect] which are necessary for the proper conduct and regulation of promotional competitions in general.[-- (a) in general; (b) in respect of a particular category of promotional competitions; (c) in respect of a particular category of persons conducting or in any way associated with a promotional competition; or 5 10 15 20 25 (d) in respect of a category of persons who may participate in a promotional competition or a category of promotional competitions.] 30 (3) [The regulations shall include provisions] Without derogating from the generality of subsection (2J, the Mini:ster may make regulations in respect of- (a) the minimum age of a person who may participate in any particular competition or category of competitions; [(b) (i) the maximum value of prizes in a calendar year, which shall not 35 exceed R1 000 000; 40 of prizes in respect of a promotional competition or a (ii) the maximum number of prizes in a calendar year; and (iii) the nature of prizes, which may be utilised in respect specified number of such competitions by a person who or category of persons which conducts, promotes, organises or in any other way is associated with a promotional competition or such competitions; subject to paragraph (b), the maximum value of prizes in a calendar year, which shall not exceed R1 000 000, the maximum number of prizes in a calendar year and the nature of any specific promotional competition or category of promotional competitions; notification of the board of every promotional competition, and the conditions and requirements in respect thereof, including the information required in respect of that notification and the payment of a fee to the board in respect of the processing of that notification; the frequency, duration and maximum number of promotional competi- of persons tions to be run in a calendar year by a person who or category which conducts, promotes, organises or in any other way is associated with a promotional competition; the geographical area in which a promotional competition or category of promotional competitions may be conducted, if such area is not the whole territory of the Republic; and] or any person the conditions or circumstances under which the board $5 consent of the person who conducts the designated by it may without promotional competition inspect any aspect, including any process or procedure, relating tcl a promotilsnal competition, including the accounting 50 60 45 55 6 No. 22927 GAZETTE. GOVERNMENT 2001 12 DECEMBER Act No. 46,2001 LOTTERIES AMENDMENT ACT, 2001 ~ procedures and the process of identifying the winner or winners of that promotional competition; ( h ) any matter relating to the conduct of a promotional competition which may reasonably have a negative influence on or consequence for the public or a part or group thereof; 5 (i) offences and penalties for the contravention of the regulations.”. Short title and commencement

2. This Act is called the Lotteries Amendment Act, 200 1, and comes into operation on a date fixed by the President by proclamation in the Gazette.